| HOUSTON/NEW YORK
HOUSTON/NEW YORK May 1 U.S. oil companies Exxon
Mobil Corp and ConocoPhillips both reported
first-quarter earnings that exceeded Wall Street expectations on
Thursday, helped partly by higher natural gas prices.
A brutal winter in North American sapped supplies of natural
gas and boosted prices at key delivery point Henry Hub by more
than 50 percent in the quarter, propping up profit at both
companies, analysts said.
Both Conoco and Exxon have increased investment in North
American shale fields that produce crude oil and natural gas
liquids. Exxon remains the largest U.S. producer of natural gas
and spent $30 billion in 2010 to acquire gas producer XTO
Since the XTO deal closed, horizontal drilling and hydraulic
fracturing in shale unlocked vast supplies of natural gas that
had depressed prices until this winter.
"I think that (Exxon's) finally beginning to derive some
benefit from the XTO acquisition even though volumes were
lower," Brian Youngberg, analyst at Edward Jones said, adding
that Conoco also reaped the benefit of higher commodity prices.
Shares of Exxon inched down 67 cents, or 0.7 percent, to
$101.74, while Conoco's stock was little changed at around
$74.32, after earlier jumping more than 1 percent.
The past winter, which affected much of the country in
January and February, lifted Exxon Mobil's average U.S. natural
gas sale price by 49 percent, helping offset a dip in global
Prices for natural gas rose around the world as well, even
as the price that the Irving, Texas company receives for its
crude oil slipped both in the U.S. and internationally.
Exxon Mobil reported first-quarter net income of $9.10
billion, or $2.10 per share, compared with $9.50 billion, or
$2.12 per share, in the year-ago quarter.
The results surpassed analysts' expectation for profit of
$1.88 per share, according to Thomson Reuters I/B/E/S.
Total production fell about 6 percent to 4.2 million barrels
of oil equivalent per day (boed).
Conoco's first-quarter profit was flat at $2.1 billion, or
$1.17 per share. Excluding items, the Houston company earned
$1.81 a share, beating analysts' estimates for $1.56 per share,
according to Thomson Reuters I/B/E/S.
Conoco's oil and gas output from continuing operations
excluding Libya edged up to 1.53 million boed in the three
months through March 31 from a year earlier, in line with
(Editing by Terry Wade and Bernadette Baum)